>> you are watching al jazeera. i'm jonathan betz, live with the headlines major disagreements could hinder a deal. iranian does not recognise a right that does not allow it to enrich uranium. >> thousands in pakistan call for an end to drone strikes. they blocked a road nato uses to bring supplies to afghanistan. >> in syria - a major below to the bashar al-assad regime. rebels seize an oil field. the loss of the field means almost all access to the fuel

reserves has been cut off. they'll have to rely on imported oil. >> a major storm system that's heading east across the united states has caused chaos. at least eight people have been killed because of the storm. three in california. strong winds brought down trees and powerlines. winter storm warns are in effect for parts of california through today. they are the headlines, i'll be back at 8:00 pm eastern. "real money" with ali velshi is next. for updates go to aljazeera.com. >> jpmorgan chase, paying a hefty price for its part in the collapse. also a small city is making a big promise.

kids who graduate high school will get free tuition. plus beyond twitter. the search for the next hot tech ipo. this is real money and i'm ali velshi. this is real money. you are the most important part of the show so join the conversation with the @aj real money. on twitter. j.p. morgan disagreed on tuesday, to pay a whopping $13 trillion, $8 billion will go to settle claims made by various federal agencies. another $1 billion will go to five states that sued the bank. but here's what might be the

moss interesting part. about $4 billion will go to consumer relief. now of that $4 billion, about half, will go to actually reducing the principal on j.p. morgan-head loans. where the value of the mortgage is higher than the value of the house. some of that money will also be put to restructuring the mortgages to reduce the monthly payments and of the remaining $2 billion some will go towards subsidizing mortgages for low to middle income borrowers, some will go to help distress areas or tearing down abandoned homes. now, this deal between jpmorgan chase and are fell produce curts across the united states, what's more j.p. morgan admits to misleadings vercleadings invest.

now when this deal ends all the civil claims against the bank, it doesn't absolve it of possible criminal charges in the future of fraud. get this: tax experts say up to $7 billion of its fine could be considered as tax deductible. a very different situation: any debt forgiven is treated like income or taxed like income. for the past seven years it hasn't been taxed. including one california woms who told -- woman who told her story to stacy 'ti tisdale. >> in 2010, well wells fargo red

elisabeth's mortgage so she could afford her payment. under ordinary circumstances, elisabeth's would have nent a huge tax bill. >> $50,000 on taxes. >> if a creditor forgives your debt normally that's considered taxable income. >> but elizabeth and all of the struggling borrowers, were spared. foreseeing the financial disaster the tax laws could create. george w. bush siedged the mortgage -- signed the mortgage relief in 2011. >> it's a really good piece of legislation. >> a good piece of legislation that may not be able to help the borrowers who benefit from the $4 billion in consumer relief provided by the jpmorgan chase

settlement. the mortgage forgiveness of relief act expires at midnight on december 31st, creating a financial nightmare for some homeowners, experts say. >> while they may be able to afford their new mortgage payment, they will be stuck with a tax bill they won't be able to afford and attempting to pay those taxes may wind them up in default again, or in foreclosure abouforeclosure. >> that $100,000 is considered income by the irs. you're now paying income tax on 140,000 which for many people could mean a tax bill of about $30,000. it is extremely importantly that congress extend this tax cut. >> but it sounds like it could be politics as usual in washington. a spokesperson for senate

finance committee told al jazeera, quote, we intend to extend tax reform. >> how difficult it is to past the simplest of bills. i fear congress will not get i.t. done. >> broad consequences for the economy. >> the j.p. morgan settlement really highlights the need to extend that law so we could have a full housing recovery. >> a need consumers would have to look to congress to fulfill. stacy tisdale, al jazeera, new york. >> before mortgages were reduced, by december 31st, banking in this country is not just about huge institutions like jb morgan or wells fargo and other caught up in the debate about being too big to fail. there are thousands of smaller american banks that serve people and especially businesses that don't necessarily fit the cookie cutter mold of big institutions. i'm talking about community

banks. hundreds of which did in fact fail during the financial melt down. >> as patricia sabga reports, new rules and changing landscape for banking. >> this town needs this me reply one horse institution only to have someplace people can come without crawling to potter. >> in it's a wonderful life, community banks still play a vital role in the nation's economy. providing loans to small businesses and farms and individuals whose needs and profiles don't always fit the rigid criteria of big banks. >> rural areas are especially important areas served by community banks, especially smaller community banks because those are the areas that large banks either don't want to serve or are pulling back from serving. >> typically defined as banks with less than $1 billion in assets community banks fared

worse than their bigger counterparts during the financial crisis. of the 414 fdic banks that failed between january 2008 and december of 2011, 85% were community banks. the roughly 7,000 community banks that survived the crisis are now wrestly with its costly legacy the raft of new regulations crafted with big banks in mind that require big money and big manpower to implement. >> nothing but the truth so help you god. >> the problem was acknowledged by janet yellen. >> the fed should continue to limit the regulatory burden for community banks and smaller institutions. >> in the meantime, many community banks are consolidating or getting gobbled up by bigger institutions. >> we are seeing a declining number of them. we aren't seeing new community

banks starting up. so my concern is they're going to play a smaller and smaller role in the community. >> at least on film it's a happy ending. >> bingo we made it! >> patricia sabga, al jazeera new york. >> the fdic has not issued a single new charter in two years. that means businesses and individuals especially in underserved communities have fewer choices when it comes to where they do their banking. well, it's the kalamazoo promise. move into the city and your kids will get free tuition. >> i literally bought a new home within two weeks. they said you're crazy. i said, somebody may want to move into the sphwushz bu the it

my kids to go to college. >> that and more. >> only on al jazeera america.

thanksgiving,. >> consumer woes continue to dog america, five years after the recession. the average why score hovers at 691. like the fico scores that the banks use to judge your experience when you get a loan, 800 an above signifies great credit. anything below 600 means you're low risk. millennials ages under 29, average debt which includes all credit cards, car loans and student loans is $23,332, and

what's more millennials have the fewest number of credit cards. but experience say they overutilize them. using them for beer and pizza on a friday night, instead of for a rainy day. they have bad credit history by paying their bills late. 30 to 46 are only marginally better off with an average score of 653. they happen to carry the biggest debt, $30,0 39, but baby boomers age 40 to 65, average 700. the debt they carry is only marginally less than the gend gen-xers. baby boomers thrived at an

economy that is growing faster than it is today, while having more access to capital. gen xers, today's gap could signify less opportunity for many. the kind that has less access to capital than their parents had. many put themselves in a hole because they can't pay their student loans. cakalamazoo has an answer to th. free college tuition. over the years, students who live in kalamazoo have received $50 million. >> michigan state university candidate adone washington is already thinking about law

school. going through high school knowing the community was behind you gave you that better push. >> students from kalamazoo get sacrifice% of tuition covered at any state university. those who go through 12 years at a kalamazoo school, get 100%. there's no gpa requirement and the money can be used for ten years after high school graduation. maurice was homeless before the program and. >> he said i would be better on the program to be honest with you. >> one in three live in poverty while many are struggling to stay in the middle class. enrollment in the district shot up more than 24% as families who otherwise would have avoided kalamazoo started moving in and snatching up property. >> people are like you're crazy

and someone might always want to live in the suburbs but i want my kids to go to college without debt. >> kristin feels she'll save hundreds of thousands of dollars on tuition for her three daughters. executive director emeritus dr. janice brown says, because of enrollment more teacher jobs were created. 70% of promise students enrolled in two schools both saw a big jump in tuition revenue. >> $30 million in our community swirling around that wasn't there before. >> dr. brown is the only one who knows the identities of the anonymous donors, and she's not telling. she said they pledged to do so forever. >> anybody that could do that could live anywhere probably in the world and they live in this small, unique, funky vibey

little place with the weird name called kalamazoo. >> already 30 other programs have popped up around the country and dozens more in the works. pittsburgh students have 26,000 students, more than twice as many as kalamazoo. pittsburgh estimates it needs $250 million endowment to pledge the amount from 2006. they consider the money an investment. >> many of these students are going and becoming nurses, becoming doctors, human resource professionals, finance professionals, all things that are needed at upmc. >> hundreds are hired by the very same companies that help pay for their tuition. however, pittsburgh ultimately relies on the generosity of the

people, not the super-rich. >> they spend all their time raising money. >> it's still too early to tell if the social experiment is changing economies. the lack of readiness and poverty are major challenges. at least a quarter of the graduates who were eligible for the scholarships did not use them. convinced the real economic boost will come around the ten-year mark where students like adoni come back with a high level job and a mission. >> i would like to exom back -- come back and impact kalamazoo. help where i came from. >> duarte meteni, kalamazoo, michigan. >> all have the same goal, by committing a guaranteed college

education. >> request stem, science, technology, engineering and math, stem, a new report card on u.s. student performance says fourth and add it graders aren't showing significant improvement. the biggest thing coming out of the report is this: achievement gap between blacks and whites in stem is huge. but 25-year-old social entrepreneur chelsea roebuck is trying to change that. >> good afternoon. >> good afternoon mr. rowebuck. >> we are going to learn the language called java script. >> his mission: develop curriculum for public schools based on stem education. science, technology, engineering and math. >> stem education is extremely

powerful. what's the first step? >> me, dot, move forward. >> i was trained as an engineer, we are are taught to think critically and come up with solutions. >> but stem education is expensive. the u.s. government hassing budgeted 3.1 billion for it. >> it's less than 1% of the money spent on education. >> mckenzie says schools across the you know, needs entrepreneurs like chelsea roebuck because there aren't enough to teach them. >> think at the u.s. government level how we can better leverage pretty scarce resources. >> today is an exciting day because we're going to be using the computers i talked about. >> roebuck invented an

inexpensive laptop. >> this is what we came up with. to design these backpacks we used the raspberry pie, which is a $35, single-board computer. and we used this in combination with our motorola lap docks, to put together our own $100 laptops. so for the price of a mac book pro, you could teach computer programming. >> you insert into the bottom of the raspberry pie. >> he has found something as powerful and coding of computer science to a young age group. >> i was especially interested in frederick douglas academy because frederick douglas has a population that is often underremitted in stem fields. school is predominantly african american and hispanic. >> a new study found that only

4% of black students scored above the 70th per tile in math. >> how do you release the sugar? >> by making it go back. >> it's not just about sixth grade coders. he is also teaching robotics and megatrotronics to students. >> we are in blood. >> and red eyes. >> he is using frederick douglas academy as a pilot for what he hopes one day will be a national program. >> we are focused on sharing our model as sort of more of an open source program that school leaders are passionate teachers, can adopt into their own classes and curriculum. >> there are a lot of things in the world that you use today that you don't realize use

megatronics but they do. >> really courts what we do. >> patricia sabka, al jazeera. >> he was just awarded a fellowship which invests in social entrepreneurs and chelsea's nonprofit. twitter in 2013, facebook in 2012, could have you addicted to paying candy crush saga on your phone. five companies that might be the next big thing.

>> twitter's initial public offering sucked all the air out of the room in any conversation about investing in technology. but there are plenty of other companies with names you might not know that are causing buzz among investors because of their hot properties and growth potential. duarte has more. >> square, the mobile payment company from twitter founder jack dorsey has revolutionized the way people pay for goods and services. valued at $3.5 as of september of last year with $550 worth of

sales. >> pedigree of its founder and given that it's a technology that i think people are starting to see more and more. >> ceo of cb insights affirmed the insights. 2014 looks to be even bigger. >> the environment hasn't been particularly receptive to tech ipos for the last many years. there are a bunch of companies that had to figure out their business models, grow, now that the market is more receptive they'll start to trie to waters. >> a mobile app that allows consumers to order food from local restaurants nationwide. the company processes 130,000 orders a day, expected revenues of $200 million in 2013. the most valuable companies are likely to be like box, an internet company that focuses on

businesses knot individuals as clients. a cloud storage company, allows companies to file their files securely. started by mark cuban. >> box falls into a number of sweet spots, cloud is a hot the topic. enterprise is a hot topic. >> this company helps lower internet crime, allows banks to more accurately value a home. 200 clients that range from the nsa to jpmorgan chase. valued as high as $8 billion. >> they sell into very, very large markets and make significant amounts of money.

>> you probably haven't heard of the british company king, but you've used its product, candy crush. investors are still wary after zing's high profile creators. ipo problems. there is high skeptic civic that zinc can remain in the world of gaming. >> no way that you buy stock in them if and when they go public. as i told you before, unless you're an investor of high renown or a big muckitymuck you won't get the shares at that

value. i want to take stock how powerfully they've influenced our world. there is the selfie i tweeted, jaw agape, my point isn't about the ipo, it's about the selfie. twitter has inspired a world filled with selfies. today is the poignant moment. the oxford dictionary has many picked the selfie as word of the year. it beat out twerk, and i'm glad for that. our selfie has been legitimized by the establishment. whether you choose to invest money in twitter, and other selfies honorees, consider that

tonight. thanks our show, i'm ali velshi, thanks for joining us. >> hello, i'm richard gizbert and you're watching a special edition of the listening post. every week on this program, we take a close critical look at the global news media. this time, we're doing something different. we're going to talk about a man who coined a phrase we often repeat but seldom stop to explain. you may have never heard of marshall mcluhan, a canadian professor of literature turned high priest of media theory, but you're probably familiar with his most widely quoted adage - 'the medium is the message'. in the 1960s, long before anybody had a facebook page, posted their whereabouts on twitter, uploaded images on youtube or exposed government secrets on wikea